Japanese investor SoftBank has pumped in about Rs 1,675 crore in fresh funding in Indian transportation startup Ola.
Ola, which has been trying to raise fresh capital since last June, is in talks with new investors to get at least $500 million more.The Bengaluru-based firm was aggressively looking at raising funds to compete with Uber, the world’s most valuable start-up.
‘The financing is Ola’s so called ‘down round’ where a company raises money from investors at a valuation lower than its previous round of fund-raising.
In this round, the valuation of Ola, which has so far raised nearly $1.5 billion in cash, will slide to about $3 billion on a pre-money basis, the people said. Pre-money refers to the valuation excluding the current round’s cash infusion. Ola’s post-money valuation will be determined by the exact amount of capital it finally attracts.
According to analysts and employees at Ola, the company clocked about 6 million weekly rides on an average between September and December 2016, across all its offerings — cabs, auto rickshaws and shuttle buses.